CLIFFORDS_LEISURE_LIMITED - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.

Cliffords Leisure Limited is a private company limited by shares incorporated in England and Wales. The registered office is Aquila House, Waterloo Lane, Chelmsford, Essex, CM1 1BN.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is a subsidiary of Cliffords Limited qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

At 30 June 2019, the company had net liabilities of £337,852. The financial statements have been prepared on a going concern basis, which assumes the continued financial support of the immediate parent company, Cliffords Limited, and another connected and former sister company. Both have confirmed that they will continue to provide the company with adequate financial support to enable it to continue to trade as a going concern for at least 12 months from the date of these financial statements. After making appropriate enquiries, the Directors have satisfied themselves that such support is likely to be available and hence have concluded the going concern basis is appropriate. true

The Company's accounting period was changed to 30 June during the period in order to align the Company with the dates of the group demerger. Accordingly, these accounts show the results for the 15 months ended 30 June 2019.

Turnover represents amounts receivable for goods and services net of VAT and trade discounts, other than monthly paid subscriptions from golf members which are accounted for on a receipts and payments basis. Deposits received for weddings taking place after the year end are deferred at the balance sheet date.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Acquired goodwill was previously written off in equal annual instalments over its estimated useful economic life of 12 years.

At 30 June 2019 the Directors reassessed the carrying value of goodwill and determined that this no longer held any value. As a result, the balance of goodwill has been written off in the accounts.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 Section 1A to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans and loans from related companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Exceptional items

Income and expenses classified as exceptional are shown separately on the face of the profit and loss account. Income and expenses are treated as exceptional in nature if they are significant one off income or expenses and are not expected to recur.

The average monthly number of persons (including directors) employed by the company during the period was 37 (2018: 38).

Creditors due after one year relate to net obligations held under hire purchase contracts which are secured by fixed charges on the assets concerned and by a parent company guarantee.

Other creditors include amounts of:

a) £nil (2018: £6,392) relating to net obligations under hire purchase contracts. Such creditors are secured by fixed charges on the assets concerned and by a parent company guarantee.

b) £279,389 (2018: £nil) due to former group companies

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified and there was a material uncertainty to which the auditor drew attention by way of emphasis.

The material uncertainty included in the audit report is as follows:

In forming our opinion we have considered the adequacy of disclosures made in the Directors’ Report and note 1.2 of the financial statements concerning the company’s ability to continue as a going concern. The company has made a loss before exceptional items of £261,854 and, at 30 June 2019, the company’s liabilities exceeded its total assets by £337,852. The directors consider the going concern basis is appropriate, based on the continued financial support of a connected company and, the immediate holding company. The financial statements do not include adjustments that would result if the company were unable to continue as a going concern. Our opinion is not modified in respect of this matter.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The company and each of the other companies within the pre demerged group were jointly registered for VAT at 30 June 2019 when VAT liability for the group totalled £1,487,331 (2018: £97,282). Since the period end, four new VAT groups have been created.

Included within operating lease commitments is £7,500 of rent payable each month until November 2019 and £12,500 per month until February 2020. These rental payments are guaranteed by the parent company.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

On 11 November 2019 the Directors served notice on the landlord to advise that they will be exercising their right to exit the lease on the 14 February 2020 as part of a planned extraction from the Golf industry.

On 14 February 2020, the trade and assets of Warley Park Golf Club were sold to the landlord and the lease for the land there was terminated and also returned to the landlord. With effect from that date, the business of Cliffords Leisure Limited relates solely to running the golf and driving range facility (and ancillary activities) at Little Channels.

At the date of signing these financial statements, the world was in the depths of the COVID-19 outbreak. In these totally unprecedented times, it is not possible to quantify or accurately estimate the effect or practicalities that this may have on the company’s trading performance or financial position going forwards. However, at the time of approval of these accounts, the golf facility is experiencing a boom period as a result of being allowed to open up much earlier than any other sport and, being a sport that can more readily comply with social distancing rules, the directors are confident of its future success.

The company has taken advantage available in accordance with Section 1A of FRS102 whereby it has not disclosed transactions with the ultimate parent undertaking or trueimmediate parent undertaking in the group.

At the period end, the company owed £39,191 (2018: £421,994) to its immediate parent company and £279,389 (2018: £nil) to companies under common control. Both of these amounts are included within creditors in the notes to the financial statements.

At the period end, the company owed £45,738 (2018: £nil) to a connected company in respect of trade and assets transferred during the period. There is no fixed repayment schedule and no interest charged on this amount.

For this and the preceding period, the immediate parent company was Cliffords Limited, a company registered in England and Wales.

At 30 June 2019, the ultimate parent undertaking was Stubbings Holdings Limited, a company registered in England and Wales.